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Chapter 7
Materials Handling
⚫ Material handling is an activity that uses
the right method to provide the right
amount of the right material at the right
place, at the right time, in the right
sequence, in the right position and at the
right cost
Materials Handling (Cont)
⚫ Systems perspective
⚫ 20-70% of product cost attributed to
material handling
Materials Handling Equation
⚫ Material Handling Equation (see Fig
11.3)
⚫ MATERIAL + MOVE = METHOD
MH Equation
WHY? NECESSARY
4 8 9 10 11
1 2 3 5 6 7
Source and Handling Unit Equipment Manpower Physical Restrictions
Type Characteristics Quantity Logistics Characteristics Type
Destination
Congestion
Storage area
requirements
Materials Handling Principles
⚫ Planning ⚫ Automation
⚫ Systems ⚫ Environmental
⚫ Unit Load ⚫ Work
⚫ Standardization ⚫ Ergonomics
⚫ Space Utilization ⚫ Life Cycle
10 Principles of MH
Principle Definition
Space utilization Effective and efficient use must be made of all available space.
Life cycle cost Life cycle costs include all cash flows that occur between the
time the first dollar is spent on the material handling
equipment or method until its disposal or replacement.
Key Aspects of Planning
Principle
⚫ The plan should be developed as a consultation between the
planner(s) and all who will use and benefit from the equipment
to be employed.
⚫ Success in planning large scale material handling projects
generally requires a team approach involving management,
engineering, computer and information systems, finance and
operations.
⚫ The materials handling plan should reflect the strategic
objectives of the organization as well as the more immediate
needs.
⚫ The plan should document existing methods and problems,
physical and economic constraints, and future requirements
and goals.
⚫ The plan should be flexible and robust, so that sudden changes
in the process will not make the plan unusable.
Key Aspects of
Standardization Principle
⚫ The planner should select methods and
equipment that can perform a variety of tasks
under a variety of operating conditions and in
anticipation of changing future requirements.
⚫ Standardization applies to sizes of containers
and other load forming components as well
as operating procedures and equipment.
⚫ Standardization, flexibility and modularity
must not be incompatible.
Key Aspects of Work
Principle
⚫ Simplify processes by combining,
shortening, or eliminating unnecessary
moves to reduce work.
⚫ Consider each pick-up and set-down or
placing material in and out of storage, as
distinct moves and components of
distance moved.
⚫ Design layouts and develop methods,
and sequences, that simplify and reduce
work.
Key Aspects of Ergonomic
Principle
⚫ Equipment should be selected that eliminates repetitive and
strenuous manual labor and which effectively interacts with
human operators and users.
⚫ The ergonomics principle embraces both physical and mental
tasks.
⚫ Using ergonomics will improve production and reduce errors.
The material handlings workplace and the equipment employed
to assist in that work must be designed so they are safe for
people
Key Aspects of Systems
Principle
⚫ Systems integration encompasses the entire supply
chain including reverse logistics. The chain includes
suppliers, manufacturers, distributors, and
customers.
⚫ At all stages of production and distribution minimize
inventory levels as much as possible.
⚫ Information flow and physical material flow should be
integrated and treated as concurrent activities.
⚫ Materials must be easily identified in order to control
their movement throughout the supply chain.
⚫ Meet customer requirements regarding quantity,
quality, and on-time delivery, and fill orders
accurately.
Key Aspects of
Automation Principle
⚫ Simplify pre-existing processes and methods
before installing should be simplified or re-
engineered before any efforts at installing
mechanized or automated systems.
⚫ Consider computerized material handling
systems where appropriate for effective
integration of material flow and information
management.
⚫ In order to automate handling, items must
have features that accommodate
mechanization.
⚫ Treat all interface issues in the situation as
critical to successful automation.
Key Aspects of
Environmental Principle
⚫ Design containers, pallets and other products used in materials
handling so they are reusable or biodegradable.
⚫ Systems design needs to include the by-products of materials
handling.
⚫ Hazardous material require special handling considerations.
Key Aspects of Planning
Principle
⚫ The plan should be developed as a consultation between the
planner(s) and all who will use and benefit from the equipment
to be employed.
⚫ Success in planning large scale material handling projects
generally requires a team approach involving management,
engineering, computer and information systems, finance and
operations.
⚫ The materials handling plan should reflect the strategic
objectives of the organization as well as the more immediate
needs.
⚫ The plan should document existing methods and problems,
physical and economic constraints, and future requirements
and goals.
⚫ The plan should be flexible and robust, so that sudden changes
in the process will not make the plan unusable.
Key Aspects of Life Cycle
Costs Principle
⚫ Life cycle costs include capital investment;
installation, setup, and equipment programming;
training, system testing, and acceptance; operating,
maintenance, and repair; and recycle, resale, and
disposal.
⚫ Plan for preventive, predictive, and periodic
maintenance of equipment. Include the estimated
cost of maintenance and spare parts in the economic
analysis.
⚫ Prepare a long range plan for equipment
replacement.
⚫ In addition to measurable cost, other factors of a
strategic or competitive nature should be quantified
when possible.
Multimedia CD
Unit Load
⚫ Unit load - number of items or bulk material arranged so
they can be picked up and delivered as one load
⚫ Large or small?
⚫ If large, cost/unit handled decreases
⚫ But, depending upon
• cost of unitizing, de-unitizing
• space required for material handling
• material handling carrier payload
• work-in-process inventory costs
• storage and return of empty pallets or containers used to
hold the unit load
⚫ smaller unit load may be desired
Unit Load (Cont)
⚫ Seven steps to design a unit load
• Unit load concept applicable?
• Select the unit load type
• Identify most remote source of load
• Determine farthest practicable destination for
load
• Establish unit load size
• Determine unit load configuration
• Determine how to build unit load
Material Handling Device Types
P1 D1
P/D 4
1 5
4
P/D 5
P/D 2
P6 D6
6
P3 D3
3
Bi-directional AGVS
P1 D1 P/D 4
1 5
4
P/D 5
2
D2
P2 P6 D6
6
P/D 3
3
Unidirectional zoned AGVs
Material transfer station
P1 D1 P4 D5
1
5
4
P5 D5
2
P2 D2
P6
6
P3 D3 D6
Design and Control Problems in
AGVSs (Cont)
⚫ Strategies for resolving
• route conflicts, so AGV throughput rate is
maximized
• other costs (purchase, maintenance and
operating costs of AGVs, computer control
devices, and the material flow network, as
well as inventory costs and production
equipment idle costs incurred due to
excessive material transfer and wait times),
are minimized
Rule of Thumb Approach to MHS
Design
Rule of Thumb Approach to MHS
Design
MHD Selection and Assignment
Model
⚫ Minimizes operating and annualized
investment costs of MHD
⚫ Variables and parameters
• i part type index, i=1,2,...,p
• j machine type index, j=1,2,...,m
• l MHD type index, l=1,2,...,n
• Li set of MHDs that can transport part i
• H length of planning period
• Di # of units of part type i to be produced
MHD Selection and Assignment
Model (Cont)
• Kij set of machines to which part type i can be
sent from machine j for next process
• Mij set of machines from which part type i can
be sent to machine j for next process
• Ai set of machine types required for the first
operation on part type i
• Bi set of machine types required for last
operation on part type i
MHD Selection and Assignment
Model (Cont)
• Vl purchase cost of MHD Hl
• Tijkl time required to move one unit of part type
i from machine type j to k using MHD l
• Cijkl unit transportation cost to move part type i
from machine j to k using MHD l
• Xijkl number of units of part type i to be
transported from machine j to k using MHD l
• Yl number of units of MHD type l selected
MHD Selection and Assignment
Model (Cont)
n p m
Min VlYl + C ijkl X ijkl
l =1 i =1 j =1 kK ij lLi
Subject to
X
j Ai kK ij lLi
ijkl = Di i = 1,2,..., p
MHD Selection and Assignment
Model (Cont)
X
kM ij lLi
ijkl − X
kK ij lLi
ijkl =0 i = 1,2,..., p; j : j Ai Bi
X
jBi kM ij lLi
ijkl = Di i = 1,2,..., p
p m
X
i =1 j =1 kK ij
T
ijkl ijkl HYl l = 1,2,..., n
M2 M1
P1
M1 M3 P2 M2
M4 M3
Fm To M1 M2 M3 M4
P1 M1 H1 7(10) 8(5)
H2 5(8) 2(2)
P1 M2 H1 8(6)
H2 4(5)
P1 M4 H1 8(8)
H2 4(5)
P2 M1 H1 2(4)
H2 1(2)
P2 M3 H1 20(6)
H2 12(2)
MILP Model for Example 1
MIN 100000 Y1 + 140000 Y2 + 7 X1121 + 5 X1122 + 8 X1141 + 2
X1142 + 8 X1231 + 4 X1232 + 2 X2121 + X2122 + 20 X2321 + 12
X2322 + 8 X1431 + 4 X1432
SUBJECT TO
2) X1121 + X1122 + X1141 + X1142 = 50
3) X2121 + X2122 = 30
4) X2321 + X2322 = 30
5) X1121 + X1122 - X1231 - X1232 = 0
6) X1141 + X1142 - X1431 - X1432 = 0
7) X1231 + X1232 + X1431 + X1432 = 50
8) - 5005 Y1 + 10 X1121 + 5 X1141 + 6 X1231 + 4 X2121 + 6
X2321 + 8 X1431 <= 0
9) - 5005 Y2 + 8 X1122 + 2 X1142 + 5 X1232 + 2 X2122 + 2
X2322 + 5 X1432 <= 0
END INTE 2
Solution for Example 1
OBJECTIVE FUNCTION VALUE
1) 101410.0
Y1 1.000000 X1121 50.000000 X1231
50.000000
X2121 30.000000 X2321 30.000000
Queuing Model for MHS Design
⚫ Example 2: A bottled water producer in New England has a large
warehouse adjoining the bottling facility. Pallets of bottled water cases
have to be delivered from the palletizer to the warehouse. The company
has decided to use fork lift trucks for delivery of the pallets to the
warehouse. These can be leased from a manufacturer. It has been
determined that it takes an average of 15 minutes for a fork lift truck to
travel from the palletizer to the warehouse, unload the pallet and return
to the palletizer in the bottling facility. An operator is required to assist in
the loading operation and this takes twelve minutes per pallet on
average. Two or three such operators are available. Given that the inter-
arrival and operator service times follow an exponential distribution,
operator and fork lift leasing hourly costs are $20 and $50, respectively
and that the company wants to lease 5 trucks, determine whether 2 or 3
operators should be assigned in order to minimize the operator and fork
lift truck idle time.
AGV-DST
Expert Systems for Truck
Selection
MATERIAL
TYPE CHARACTERISTICS
MOVE
METHOD
PHYSICAL
HANDLING UNIT EQUIPMENT
RESTRICTIONS
Power availability
Expert Systems for Truck
Selection
Models for Conveyor
Performance Analysis
⚫ There are m stations which load or
unload n carriers
⚫ Amount of material loaded on the jth
carrier as it passes station i is fij
⚫ If material unloaded, assign a negative
value to fij
⚫ Load/unload cycle is a period of length p
Models for Conveyor
Performance Analysis (Cont)
⚫ Construct a set Fi = {fi1, fi2, ..., fip}
including load/unload activities carried
out in p successive carriers
⚫ For e.g., if add one load to one carrier at
the first station, unload two from the next
and let the third one go by without
loading or unloading and repeat, cycle
has a period of length 3
⚫ F1 = {1, -2, 0}
Models for Conveyor
Performance Analysis (Cont)
⚫ p need not be equal to n.
⚫ In a cycle, total material loaded must be
equal to total unloaded
m
(f i1 + f i2 + ...+ f ip )= 0
i=1
Models for Conveyor
Performance Analysis (Cont)
⚫ One round completed when all m carriers have
gone around the conveyor once
⚫ So, n/p load and unload cycles in the first
round
⚫ If carrier j is in some position of the load/unload
sequence (with respect to station i) during one
round, it need not be in same position in
subsequent rounds
Models for Conveyor
Performance Analysis (Cont)
⚫ It can be shown that if n mod p is not
equal to 0, load picked up or dropped off
will change from one round to the next,
for the same carrier at the same station
⚫ Let Pijk be the load/unload sequence
position of a carrier j, with respect to
station i in round k
Models for Conveyor
Performance Analysis (Cont)
⚫ Given Pij1, Pijk can be determined using
the following formula, for k=2, 3, ..., p
⚫ Pijk = [Pijk-1 + n mod p] mod p
⚫ After p rounds, the position sequence
repeats itself
⚫ If Pijk=0, set Pijk=p
Models for Conveyor
Performance Analysis-Example
52413 13524
41352 53142
35241 14253
31425 25314
2
Models for Conveyor
Performance Analysis-Example
⚫ Load/unload cycle length has a period 5
⚫ F1={2, 0, 2, 0, 3}; F2={-2, 0, 0, -1, -4}
⚫ Determine the conveyor capacity
Models for Conveyor
Performance Analysis-Example
⚫ Do Example 3
Models for Conveyor
Performance Analysis-Example
Models for Conveyor
Performance Analysis (Cont)
⚫ Change conveyor capacity requirement
in one of three ways
• Change number of carriers n. Pijk will change
resulting in different cumulative loads and
hence, carrier capacity
• Change load/unload sequence of one or more
stations
• Change the location of one or more stations
Queuing Network Model for
Analysis of MHS Systems
Mean Value Analysis Algorithm
Step 1: The first step is to estimate an initial value of Lij. The best
method is to evenly distribute a part over all the stations it visits.
Step 2: Determine the throughput time Wij using the equation
1 N j − 1 Lij Lir
Wij = j + +
i N j i j r j ir
Step 3: Determine the production rate Xj using the equation
Xj=N j/[∑i=1,..m(vijWij)]
Step 5: Compare the Lij value calculated in step 4 with the previous
value. If the new value is within a desired range of the previous
value, stop. If not, go to step 2.
Models for Conveyor
Performance Analysis-Example
⚫ Do Example 5 - MVA